Business

Trulieve now world’s biggest PotCo

By Alex Halperin
Oct 4, 2021
Trulieve CEO Kim Rivers, Courtesy Trulieve

Tallahassee Fla.-area based MSO Trulieve completed its $2.1B acquisition of MSO Harvest and is now the world’s largest and most profitable cannabis company.

Trulieve initially became the dominant player in Florida, which has recently become a target state for many MSOs. Though MED only, it’s now the third largest market in the country, after Colorado and California.
Forbes

  • Trulieve will have 149 retail locations in 11 states more than 3.1 million square feet of cultivation and just over 8,500 employees.
    Tallahassee Democrat 
  • In Q2 2021 the companies had a combined $317.6M in reported revenue, more than any other MSO. In the same quarter Trulieve reported net income of $40.9M on revenue of $215.1M.
  • CEO Kim Rivers says Trulieve is now building out regional hubs in Pennsylvania and Arizona, where Harvest had operations and was based. 
  • Jackie Bryant reports in Forbes that the deal gives the company more than $350M in cash and equivalents, as of June 30, plus Trulieve’s recently announced $350M debt financing and Harvest’s $55M from the sale of its Florida license to Planet 13.

The deal closes weeks after Rivers’ husband, J.T.Burnette was convicted on federal corruption charges unrelated to Trulieve. 

  • During the trial, prosecutors played an audio recording in which Burnette claimed to have successfully influenced the licensing process to benefit the company.
  • Testifying under oath, Burnette said that in the recording he had been “bragging about something that happened before my time.
  • According to an S.E.C. filing, Burnette is a minority owner of a company that provides construction and related services to Trulieve. In 2020, Trulieve’s property and equipment purchases from the vendor totaled $96.7M.
  • Trulieve has asserted it has nothing to do with the case. Neither the company nor Rivers were accused of wrongdoing.
  • Burnette’s sentencing is scheduled for November 8.

Pennsylvania MED patient and comic artist Brian “Box” Brown has been a vocal critic of Trulieve.